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James Desnick, chairman of the board and principal shareholder in the now-defunct Doctors Hospital in Hyde Park, IL, agreed on Dec. 19 to pay the federal government and the state of Illinois $7 million each to settle allegations that he and the hospital defrauded Medicare and Medicaid over the last eight years.
The government alleges that Desnick and Doctors Hospital constructed kickback payments to some employees and submitted claims for medically unnecessary services, as well as claims for improperly coded services.
According to the settlement, Desnick must pony up the entire $14 million within 10 days. Desnick and any entities that he owns also are prohibited from billing any federal health care program for the next five years unless he signs a corporate integrity agreement. That agreement would remain in effect for five years.